An ethical investment An ethical investment An ethical investment An ethical investment

with financial and with financial and with financial and with financial and

social performance social performance social performance social performance

Finance Avenue

November 15th, 2014

Presented by

Alex TackAlex TackAlex TackAlex TackRegional manager for Latin

America

Alterfin cvbaAlterfin cvbaAlterfin cvbaAlterfin cvba----scrl is a cooperative society scrl is a cooperative society scrl is a cooperative society scrl is a cooperative society created created created created in in in in 1994 by1994 by1994 by1994 by

• NGOs: 11.11.11, Vredeseilanden, Oxfam

Wereldwinkels & Oxfam Solidariteit, FOS, ...

• Banks: Triodos, HBK Spaarbank

• Meanwhile about 4.500 private shareholders have

joined the cooperative

MissionMissionMissionMission

Mobilise capital in the North to support the development of a

financial network that is accessible to poor people in the

South

Creation and mission

Board of Directors

Composition of board of directors :Composition of board of directors :Composition of board of directors :Composition of board of directors :

• NGOs

• Finance sector

• Private shareholder representatives

• Independant directors

The Alterfin team

Management and back officeManagement and back officeManagement and back officeManagement and back office

CreditCreditCreditCredit Management TeamManagement TeamManagement TeamManagement Team

Capitalon Dec. 31st 2012

on 30/9/2013

What happens with our share capital?

Alterfin Alterfin Alterfin Alterfin provides credit to two provides credit to two provides credit to two provides credit to two sectors in the sectors in the sectors in the sectors in the South: South: South: South:

• Microfinance Institutions

Example of investment: loan / 400.000 USD / 36 months / 8,50%

The organisations dispatch our funding into small (micro)credits

Sectors: agriculture, trade, services, production, housing, ...

• Sustainable agriculture (mainly fair trade & organic)

Example of investment: credit line / 250.000 EUR / 8 months / 7,00%

Working capital for prefinancing, gathering, processing and commercialisation

of produce

Sectors: coffee, cocoa, wine, banana, honey, sesame,…

Characteristics of our financing

Investments Investments Investments Investments <<<<--------> Gifts> Gifts> Gifts> Gifts

• Types: loan, guarantee, participation

• Gifts: dependence, disturbance of market, not scalable

Intermediaries Intermediaries Intermediaries Intermediaries <<<<--------> Final beneficiaries> Final beneficiaries> Final beneficiaries> Final beneficiaries

• Local initiatives

• Efficiency

Portfolio and number of partnerson Dec. 31st 2012

on 30/09/2014

0000

20202020

40404040

60606060

80808080

100100100100

120120120120

140140140140

0000

5.000.0005.000.0005.000.0005.000.000

10.000.00010.000.00010.000.00010.000.000

15.000.00015.000.00015.000.00015.000.000

20.000.00020.000.00020.000.00020.000.000

25.000.00025.000.00025.000.00025.000.000

30.000.00030.000.00030.000.00030.000.000

35.000.00035.000.00035.000.00035.000.000

40.000.00040.000.00040.000.00040.000.000

45.000.00045.000.00045.000.00045.000.000

EUR

EUR

EUR

EUR

Capital Portfolio Alterfin Nb. Active partners

Nb.

Nb.

Nb.

Nb.ac

ac

ac

active

tive

tive

tive partners

partners

partners

partners

Geographical scopeon Dec. 31st 2012

on 30/09/2014

85,24%85,24%85,24%85,24%

6,69%6,69%6,69%6,69%

6,61%6,61%6,61%6,61%

85,2% Latin America85,2% Latin America85,2% Latin America85,2% Latin America

6,7% Africa6,7% Africa6,7% Africa6,7% Africa

6,6% Asia6,6% Asia6,6% Asia6,6% Asia

0,8% Middle East0,8% Middle East0,8% Middle East0,8% Middle East

0,7% International0,7% International0,7% International0,7% International

Alterfin around the world

Investment of 38 Mio EUR for 116 South partners in 27 countries

Portfolio distribution by sectoron Dec. 31st 2012

on 30/09/2014

59,4%

5,4%

14,0%

5,2%

4,5%

2,8%

59,4% Microcredit

5,4% Funds

14,0% Coffee

5,2% Cocoa

4,5% Wine

2,3% Honey

2,8% Sesame

0,9% Sugar cane

0,8% Olive oil

0,6% Brazil Nuts

0,9% Quinoa

0,7% Rice

0,7% Soy

0,6% Banana

0,2% Blueberry

0,0% Mango

1,0% Others

Fondesurco Fondesurco Fondesurco Fondesurco (Peru(Peru(Peru(Peru))))

• Rural microfinance in remote areas of South Peru

• Generally the first institution intervening in a certain area

• Balance between financial and social return

• Strong compromise with conservation of the environment

Microfinance: an example

CPCCPCCPCCPC: financing small scale coffee farmers in : financing small scale coffee farmers in : financing small scale coffee farmers in : financing small scale coffee farmers in

Southern Laos (SE Asia)Southern Laos (SE Asia)Southern Laos (SE Asia)Southern Laos (SE Asia)

• 1796 members, 60% of them living on less than 1$/day

• Selling all their coffee Fair Trade at Coffee Rombouts

• Support to the farmers: Technical Assistance

• Benefits for the whole community: investment in

health and education

Sustainable Agriculture: an example

Credit Analysis

Social Social Social Social criteriacriteriacriteriacriteria

• Marginalised groups of society

• Involvement of clients and decision making process

• Ownership/property and profit question

Financial Financial Financial Financial criteriacriteriacriteriacriteria

• Balance sheet, Profit & Loss account, Cash flows

• Specific:

• Microfinance � portfolio of micro credits

• Fair Trade � sales

Fund manager for third parties

AlterfinAlterfinAlterfinAlterfin finances organisations in the Southfinances organisations in the Southfinances organisations in the Southfinances organisations in the South

• With own ressources = with share capital of the

cooperative Alterfin

• With other ressources

�Alterfin builds up portfolio and monitors investments

�Generally only for existing clients of Alterfin

• Calvert Foundation (USA)

• Fefisol & Fopepro

Global outreachon Dec. 31st 2012

Clients/producers reached by type of living areaClients/producers reached by type of living areaClients/producers reached by type of living areaClients/producers reached by type of living area64% living in rural areas

36% living in urban areas

Clients/producers reached by genderClients/producers reached by genderClients/producers reached by genderClients/producers reached by gender60% women

40% men

Total reachTotal reachTotal reachTotal reach57.620 persons and their families

on 31/12/2013

Alterfin shares

CharacteristicsCharacteristicsCharacteristicsCharacteristics of of of of investmentinvestmentinvestmentinvestment

• Social return

• Accessible and flexible

• Financial return: dividend

• Fiscal stimulus for Belgian taxpayers

Price Price Price Price

• Private persons: 62,50 EUR per share

• Organizations: 250 EUR per share

• Tax reduction: 5% of invested money in Alterfin for 5 years

(~ extra return of 1% per year)

• Min. investment 437,5 EUR (7 shares)

� 21,88 EUR tax benefit

• Investment 6.437,5 EUR (103 shares)

� 320 EUR maximum tax benefit

Tax benefits for private investors

Dividend in %

1,501,501,501,50

1,001,001,001,00 1,001,001,001,00

1,501,501,501,50 1,501,501,501,50 1,501,501,501,50

1,751,751,751,75

2,752,752,752,75

4,004,004,004,00 4,004,004,004,00

3,503,503,503,50

3,753,753,753,75

3,353,353,353,35

3,003,003,003,00

2000200020002000 2001200120012001 2002200220022002 2003200320032003 2004200420042004 2005200520052005 2006200620062006 2007200720072007 2008200820082008 2009200920092009 2010201020102010 2011201120112011 2012201220122012 2013201320132013

Thank you for your attention

Alterfin cvba/scrl

Haachtsesteenweg 159/

Chaussée de Haecht 159

1030 Brussels

Belgium

www.alterfin.be

Visit us on booth

705 !